As reported by WIRED, President Trump is imposing a new 10 percent tariff on nearly all imports to the United States, following a Supreme Court ruling that overturned most of the levies imposed by the US government last year.
This move is based on Section 122 of the Trade Act of 1974, which allows the president to single-handedly and immediately charge tariffs of up to 15 percent if there are “large and serious” trade deficits. The new tariffs will take effect on February 24, 2026.
According to Gregory Husisian, a partner and litigation attorney at Foley & Lardner LLP, the administration could use this time to prepare other forms of tariffs, essentially switching legal justifications to get the same regulatory effects. “[Section 122 tariff] is for a limited time period, so it's going to be a bridge authority,” Husisian says.
The Infrastructure Question
The new trade policy has significant implications for the US trade infrastructure, as it may lead to a surge in trade investigations and the launch of Section 301 and Section 232 tariffs. The administration could rush through the process of conducting trade investigations based on concerns of national security or unfair trade practices abroad.
Experts tell WIRED that they expect the refund process for companies seeking refunds on their tariff payments to be messy and long, since it might require companies to file complaints and calculate the amount of money they believe they are entitled to receive.
Regulatory Pressure Builds
The Supreme Court decision specified that the IEEPA gives the president significant power during emergencies, but noted this power doesn’t extend to taxation. Trump's move to impose new tariffs is seen as a test of the limits of trade policy and the role of the executive branch in shaping US trade relations.
The de minimis exemption, which is used to exempt ecommerce packages under $800 in value from being taxed, remains suspended, according to a separate executive order. This suspension has caused significant disruptions to ecommerce platforms and budget shopping platforms.
Power and Control
Trump's actions have sparked controversy, with some critics arguing that the move is an attempt to circumvent the Supreme Court ruling and exert control over US trade policy. The administration's use of Section 122 tariffs has raised questions about the limits of executive power and the role of Congress in shaping trade policy.
